WASHINGTON, DC-Fannie Mae departed from its standard multifamily DUS REMIC structure earlier this month, with a $700-million offering backed by floating rate collateral. It reverted back to form with its eighth Multifamily DUS REMIC for the year – and in a first, its second for September. This offering totals $1.1 billion and is being offered under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program.

This offering had both 10-year and five-year tranches for a total of six tranches all together, Kimberly Johnson, Fannie Mae vice president of Multifamily Capital Markets, tells GlobeSt.com. Demand was high for the 10-year tranches in particular, which were more than two times oversubscribed. Fannie Mae offered a similarly structured DUS REMIC—with five- and 10-year paper, that is—about six weeks ago. However, in this offering, the spreads tightened by at least 10 basis points, Johnson notes.

She attributes that to the Federal Reserve Bank’s new round of quantitative easing. “It had been highly anticipated but after it launched we saw a real move into these assets by different investors.” The 10-year tranche was oversubscribed within hours, she says—attributably to investors clamoring for more duration and yield.